Pence to make announcement on unemployment loan

Indiana Gov. Mike Pence speaks with the media after emerging from Speaker of the House Brian Bosma's, R-Indianapolis, office on the final day of the 2015 legislative session at the Statehouse in Indianapolis, Wednesday, April 29, 2015. Indiana lawmakers are expected to work into the night Wednesday to wrap up the 2015 legislative session, signing off on a new two-year state budget and putting contentious issues such as control over the State Board of Education and a religious objections law behind them. (AP Photo/AJ Mast)

INDIANAPOLIS (AP) — Gov. Mike Pence is set to make an announcement about a federal loan that the state took out to pay unemployment benefits during the recession.

The Republican governor is expected to agree to a plan that would use about $250 million from Indiana’s surplus to finish paying back the federal government for the loan.

If Indiana pays off the loan by Nov. 10, the state will eliminate a $126-per-employee penalty that businesses would be charged for 2016.

Officials expect to transfer money from the state unemployment fund next spring to restore the withdrawal from the state’s $2 billion in cash reserves.

Businesses pay taxes into the unemployment fund, which has already repaid much of $2 billion in federal loans.

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